Private sector should also be considered for the receipt of imported technology. In many fields it is far ahead of the public sector. Therefore, it is in national interest that the most suitable company be selected to receive technology.
If the Government is serious about according equal status to the private sector, it should initiate the following steps immediately:
As DDP’s sole charter is to sustain monopoly of the public sector by keeping the private sector out by all means fair or foul, it should be abolished and replaced by Department of Defence Industry (DDI). DDI should be tasked to look after the interests of the Indian defence industry as a whole. Officials of DDI should possess breadth of vision to view all issues in larger national interests, rather than in narrow parochial and blinkered manner as at present. A dedicated Joint Secretary should be detailed to facilitate entry of the private sector.
Private sector should also be considered for the receipt of imported technology. In many fields it is far ahead of the public sector. Therefore, it is in national interest that the most suitable company be selected to receive technology. This will save considerable time and resources as only incremental technology may be needed to be purchased.
Private sector associations (viz. CII & FICCI) should also be represented in categorization committees and DAC, albeit within the constraints of security considerations. Potential of private sector should be exploited by treating them as partners in progress rather than as a threat to the public sector. Their prowess should be considered as a national asset.
A mechanism should be put in place to redress grievances. In case an entity feels wronged by a partisan and subjective decision, it should be able to seek immediate relief. Disciplinary action should also be initiated against delinquent officials.
There should be an institutionalized interface between MoD, services and the private sector for regular interaction at the policy making level. Such a platform will go a long way to promote mutual confidence and remove unnecessary irritants.
The private sector was delighted to hear Defence Minister Pranab Mukherjee declare publically in New Delhi in June 2005, “The Government is committed to the development of a vibrant and proactive defence industry in India. It should be ensured that the available capability, infrastructure and resources, including intellectual capital, are harnessed to the fullest extent as our national assets and optimally utilised in achieving this objective.” He further advocated a strong and healthy partnership between the public and private sector for enhancing the defence capability and in sustaining a powerful domestic industrial base for the future.
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Undoubtedly, the public sector possesses excellent infrastructure, manufacturing facilities and a highly experienced task force. Unfortunately, due to its monopolistic pre-eminence it has failed to keep pace with the latest technology, managerial practices, marketing skills and financial management. It is fully aware of its weaknesses and knows that it cannot survive in an open competition with the private sector. This sense of insecurity makes it wary of the private sector and it tries all stratagems to block its entry. The Government has to realise that both public and private sectors are national assets and harnessing of their potential is essential if India wants to achieve self-reliance in defence production. It should not play favourites and treat both as equal partners in progress.
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